The Existence of High Exit Barriers Such as Ownership of Specialized

question 57

Multiple Choice

The existence of high exit barriers such as ownership of specialized assets (e.g., large aircraft) in the airline industry indicates that

• A) customers are relatively weak because of the high switching costs created by frequent flyer programs.
• B) the industry is moving toward differentiation of services.
• C) the competitive rivalry in the industry is severe.
• D) the economic segment of the external environment has shifted, but airline strategies have not changed.

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Definitions:

Outdated Computers

Computers that have become obsolete due to advances in technology or software.

Supply Chain

The entire system of producing and delivering a product or service, from the supplier of raw materials to the customer.

Logistics Management

The part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption.

Amazon

An American multinational technology company that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence, one of the world's largest online retailers.